Amazon hits sellers with ‘fuel surcharge’ as Iran war roils global energy markets

The war in Iran has hit global oil markets with gas prices in the United States a significant leap. Amid rising transportation costs, Amazon has introduced a new 3.5% fuel surcharge for sellers using its distribution network. The policy has the potential to impose significant new costs on merchants who rely on the e-commerce giant to sell their products.

Amazon told TechCrunch that the surcharge will be implemented in the near future, though the company said it will continue to evaluate a potential policy change as market conditions evolve. It was news first reported By Bloomberg.

“Rising fuel and logistics costs have increased operating costs across the industry,” the spokesman said. “We have accepted these increases so far, but as with other major carriers, when costs remain high, we apply temporary surcharges to partially recover those costs.” The surcharge is “significantly lower than the surcharges imposed by other major carriers,” the spokesperson added.

The new policy will take effect on April 17 and will affect sellers who use the company’s policy Fulfillment by Amazon serviceBloomberg writes. Fulfillment by Amazon, commonly known as FBA, allows companies to ship their products to Amazon’s warehouses, where they are packaged and shipped to buyers. Amazon doesn’t disclose how many merchants use FBA, but the program supports the vast majority of third-party sales on its platform.

This is the first time Amazon has introduced such a surcharge In 2022 – this was, not so coincidentally, the last time the barrel of crude oil exceeded 100 dollars. What happened in 2022? Russia just invaded Ukraine. stuns energy markets. Today, the war in Iran is fueled by the Trump administration and the Israeli government conspiracy the nation’s Supreme Leader – similarly rattled the markets.

Iran is strategically located along the northern border of the Strait of Hormuz – a narrow but important transportation lane for global oil supplies through which about 20% of the world’s oil supplies pass – and the country tried to block the shipping lanes therethere is a movement had a great impact energy prices around the world.